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July 20, 2013

Sample Dissertation on Extrinsic and Intrinsic Motivation

Chapter 1: Introduction

Motivation is one of the most frequently discussed topics of management. How can one make the employees to perform their best in any type of organization? The answer is very simple, by motivating them. Motivation means different things to different individuals. For some it may be an incentive and for others, a psychological backing or setting a good example, (Deci and Ryan, 2008). Motivation is something abstract and the difficulties arise when someone tries to explain the meaning and application of motivation (Thomas, 2003). Motivation can be defined in number of ways. One definition says that motivation is a process, which governs choices made by persons or lower organisms among alternative forms of voluntary activity, (Cameron & Pierce, 2008). Motivation is actually the act of inducing an individual to follow a desired course of action, (Weightman, 2008).
According to (Haslam et al, 2000) motivation is the immediate influence on the direction, vigour and persistence of behaviour. According to (Faragher et al, 2005; Habebe, 2001; and Huddleston et al, 2002) motivation is actually steering one’s actions towards certain goals and committing a certain part of one’s energies to reach them. Similarly some other thinks that motivation is a reported urge or tension to move in a given direction or to achieve a certain goal.
Motivation is either intrinsic or extrinsic in nature. Intrinsic motivation originates in factors within a person, (Murphy, 2009). People are said to be intrinsically motivated when they engage in an activity for its own sake, out of sheer enjoyment, without expecting tangible payoff for their efforts, (Simon, 2009). Eating a fine meal, listening to music, spending time with friends and working on a hobby are among the activities one might find intrinsically motivating. On the other hand extrinsic motivation originates in factors outside the person, (Bohlander and Snell, 2009). People are said to be extrinsically motivated when they engage in an activity as a means to an end – to win money, grades or recognition; to fulfil obligations; or to avoid punishment, (Maylor and Blackmon, 2005).
Indeed, one often assumes that motivation is a key to success in his work. Thus, the motivation is designed, by definition, as a precursor to involvement in the workplace and the initiation of productive behaviour. The satisfaction would be found to do the job would persevere and could predict the performance, especially when the satisfaction relates to the intrinsic characteristics of the activity. Yet despite the importance of this variable in the quality of life of employees, (Faragher et al, 2005) the link between satisfaction and performance is the subject of debate (Judge, Thoresen, Bono & Patton, 2001; Fisher, 2003).
It is often said and believed that employees are more motivated and satisfied with the intrinsic characteristics of their work. A particularly fruitful difference in the study of motivation is cleared by theorists of academic motivation which emphasize the virtues of motivation, i.e. intrinsic (related to personal satisfaction to be found to perform an activity) versus more extrinsic motivation and low self-determined (due to the satisfaction that you may have to get a reward from the outside or the consequences of this award for self-image and personal goals), (Saunders et al, 2009). The intrinsic motivation is not lacking in their interest. Indeed, they seem related to the implementation spontaneous and self-determined learning activities, without any external pressure to use or develop a system of extrinsic rewards.
Moreover, although the distinction between the intrinsic and extrinsic motivations seems more obvious, everyone, teacher or manager knows that there may be areas of passages between the motivations which do not account this dichotomy between intrinsic and extrinsic aspects.
Finally, the motivation seems more unstable than is usually considered and depends on changes of life of people at work, (Cameron & Pierce, 2008). The motivation seems to be the result of a set of factors too complex and dynamic to be revealed by quantitative measurements and predefined point.
Theories of intrinsic motivation were developed over the years 70-80 such as Cognitive Evaluation theory which is a theory in Psychology that is designed to describe the belongings of external affects on internal motivation (Deci and Ryan, 2008). Another theory of intrinsic motivation presented by Professor Steven Reiss called 16 basic desires theory that motivate actions and define personalities on the basis of 16 desires in human behaviour, (Thorndike, 2010). This set of theories to compare the motivation forces motivating the voluntary activities, for interest in these activities and for fun and personal satisfaction that one derives (Deci & Ryan, 1971, 1975, 1985). At the other extreme the theory of job characteristics postulates that motivation, satisfaction, productivity, such as persistence in a job depends on whether this job allows a certain autonomy, a meaningful activity (variety of skills involved with an identifiable task utility), and a perception of its effectiveness. Most of the time motivation and satisfaction are closely related. From the theory of needs developed by Maslow (1943), motivation is seen as coming from the desire to satisfy an increasingly number of needs. These needs would be met in order of increasing priority from the purely biological needs (motivation most extrinsic), if necessary security, love, esteem, to self-actualization needs (motivation most intrinsic). From this theory, another theory was developed in direct reference to the work, i.e.  ERG theory (Existence, Relatedness and Growth) does not prioritizing requirements as the previous one but that each applicant may need to act simultaneously. Motivation would be dependent on the intensity of need, which is itself related to the degree of personal satisfaction. In other words, the more the person will be satisfied, unless the need is intense.
Nevertheless, the motivation does not depend exclusively on the individual and his needs. It can also depend on the characteristics of the work environment, the nature of employment or management style of superiors and often referred to in this case, extrinsic sources of motivations (not excluding that it may promote self-determined motivation if the environment supports the sense of autonomy and competence). It is one of these theories, the theory of building whose main doctrine is the law of effect (Thorndike, 2010), or the theory of Pending (Vroom, 1964). Reinforcement theory said that the reward obtained leads usually the subsequent behaviour, the theory of expectation explains when and why behaviour will occur according to the expectations. While the precepts of the theory of building are still useful, the theory itself has fallen into disuse with the psychologists. The main reason is probably that this theory provides a low understanding of the motivational process itself (Locke, 2009). It is simply to describe the direct relationship between rewards and behaviour. Although these theories are the motivation from different perspectives, they do not necessarily lead to predictions for different behaviours. In addition, some of these theories can be further, such aspects of the theory of expectations with those of the theory of self-efficacy, which were combined by Locke and Latham (2009).

1.1  Company Background


This study is using the case study of Ideal Bakery. This bakery was established in 1979 and is situated in Faisalabad, Pakistan. The bakery has almost 100 employees and divided in two sections bakery and sweet makers. The major products offered by Ideal bakers are confectionary items and sweet products. The bakery is well known in city of Faisalabad, Pakistan for some of special products such as Black Forest Cake, Croissants, Cookies and Coconut Pastries. The idea to include sweets as an extension product in 1992 was a turning point towards success. Ideal bakery’s sweets became very popular in market and specially coconut made sweets get established as a trademark for this bakery.
To get the goals of any organization in certain intensity there are some issues involved. These issues, consists of necessary business, technology and human factors, are called Critical Success Factors. Firstly, a company has to focus on its business environments and secondly, it must be examined that what kind of risks have to face during the implementation cycle of business strategy, because the CSF is very much reliant on business position.
Ideal Bakery believes that it owed its success to the efforts of its personnel. Thus they left no stone unturned for the training, development and growth of their personnel and provide them the best support and technology available. The Company also encourages continuous and effective communication within the organization because the effective communications act as the “life’s blood”. Many successful organizations have strong communications. When an organization is struggling against failure, the main reason behind this is absence of internal communications. Trust leads to loyalty and loyalty to of the employees helps to create a ethical climate for working.

1.2 Problem Statement


Ideal Bakery became popular its sweets and achieved very good response from market until 2005. Since after 2005 the quality of products gets declined and Ideal Bakery has lost its position in market as a preferred baker and sweet maker. The owner has provided proper training and development opportunities to employees also encouraged them for the performance. The company has seen continuous success of 12 years almost but in 2005 the owner has gave business to his two sons and stayed himself out from business. The new owners are young and energetic but there was a communication gap between owners and employees which created problems. The senior employees who have been working with the ex-owner for a long time didn’t feel any recognition and left their jobs. Few of senior employees who left their job from Ideal Bakery have introduced new products for that bakery and after their resignation big gap came which was not filled so easily. The owners have appointed some new bakery and sweet works also promoted workers inside the organisation but quality of bakery is still not satisfactory. The employers have observed that fresh educated people don’t want to come in bakeries and prefer to work in big food industries. May be the reason would be their feeling about bakery environment where majority are uneducated. Employees were addressed by the owners for improvement of their quality and offered good salary packages but response from employees was not very positive. The majority of employees are uneducated there and didn’t properly understand issues related to new management and their demand. The employers have decided to do some activities related to motivation of their employees and for that purpose non-monetary incentives are focused because monetary incentives (salary) was offered already but no result came.

1.3 Aims and Objectives of the research

The basic purpose of this study is to assess non-monetary incentives which implemented in Ideal Bakers and its consequences on performance of their employees.
The aims and objectives for this study are defined as under:
1.    Identify the current non-monetary incentive utilized by the Ideal Bakers to motivate the employees.
2.    Explore the employees’ perception of adequate non-monetary incentives that they require in order to be motivated.
3.    Highlight the similarities and differences between employees’ perception of adequate non-monetary incentives and organization’s currently used incentives.
4.    Make recommendations of appropriate on-monetary incentives that would be more effective in motivating employees.

 1.4 Rationale for Study

The reasons for this study are to discuss the impact of non-monetary rewards on employee’s performance. It provides the researcher to deeply observe the organisation where performance was on its peak but get declined due to change in management and efforts from new management to get back the position. The researcher gets impact of non-monetary incentives implementation in different country Pakistan where economic crisis is already present and monetary incentives are preferable choice for people. 
The study also provides researcher experience in communication with people during data collection and improves observation skills through analyzing the findings came from data collection.
1.6 Structure of Dissertation
The dissertation contains five chapters in which first chapter is introduction to the research topic, second chapter is literature review, third chapter is research methodology, forth chapter is finding and analysis and fifth chapter is discussion and conclusion. In first chapter reason for research, problem statement, aims and objective for research and rationale of study is stated. In second chapter academic and literary work of different researchers and scholars is discussed by the researcher related to the objectives of research. Third chapter is research methodology in which researcher has discussed design and pattern of research. Forth chapter is finding and analysis in which telephonic interviews is taken by the employees, managers and one of the owners of Ideal Bakery. Fifth chapter is discussion and conclusion in which researcher has made proper discussion on research topic through literary work, results of finding and analysis.
1.7 Conclusion:
The first chapter is mainly introduced the research topic defined problem statement and objectives of research. The selected organisation is Ideal Bakery where performance of employees is not satisfactory and implantation of non-monetary incentives to improve performance presented as a problem statement. Researcher has carried out this research through study on literary work of different researchers in the chapter literature review. Then the research methodology is designed for data collection which gets discussed in final chapter discussion and conclusion.


2.1 Introduction


According to Greenberg & Baron (2008) the definition of motivation can be broken into three major parts. The first part analyses the notion of arousal that deals with the drive, or energy behind individual (s) action. People are usually motivated and driven by the desire to leave a good impression on others by doing things that earn them success and respect in the society. The second part refers to the choice which people make in order to allow their behaviour to take certain direction.  The final and third part deals with the maintenance of behaviour glaringly explaining as to how people have to remain consistent to meet their goals and targets.
2.2 What is motivation?
The term motive generally is defined as desires, needs, emotions or impulses that inspires someone be it an individual or group to do something. Hence, motivation is a state in which person is motivated and moved to action.  Upon taking into consideration work environment, the fact remains that motivation is in this context a subject to be analyzed and discussed within a workplace setting (Adams, 2011).
Naturally, it relates to employees’ motivation to perform, stay and commit in a company, cooperate, lead or support a leader, help customers and so forth (Bailey and Clegg, 2008).
Some authors (Simon, 2009; Armstrong, 2006; and Amabile, 2008) explain motivation by drawing on its origin and sources. In this vein, work motivation is defined as a psychological course following from the mutual interface linking the individual and the surroundings that influences a person’s selections, attempts, and determination, (Latham and Ernst, 2009). Atkinson (2009) defined motivation as the psychological procedure that gives behaviour reason and way, a tendency to act in a purposive mode to attain exact unmet desires, an unfulfilled requirement, and the force to accomplish, in that order. Alderfer (2008) suggests that motivation can be defined in a variety of ways, depending on who you ask.
2.3 How motivation could be defined at work place?
Defining work motivation is a challenge as the opinions, views, analysis, management practices differ on how important this issue is for the company. Everyone has an opinion on the definition of work motivation and revenues to strengthen the company. The success of the company depends on group performance; they even depend on performance of an individual, (Fisher, 2003). This definition clearly highlights the difficulty of directly observing the motivation of a person. It is a hypothetical construct, a pattern of behaviour that any individual is supposed to develop (Bandura, 2008). This is a process that is triggered origin by the action of a force that depends on internal motivational characteristics as personal needs, instincts, instinct, personality traits (hedonism, fear, lust, greed, jealousy, etc.), (Thomson, 2003). It can also be triggered by a force external motivation depends on the situation, the work environment, the nature of the job, the management style of superiors, etc., (DeWit and Meyer. 2004). These motivational factors dispositional or internal, and external or situational, are changing and specific individual, (Weightman, 2008).). Psychologists agree on the motivation and characteristics of four distinct components of this construct: - The outbreak of behaviour: the transition from inactivity to performing tasks that require an expenditure of physical energy, intellectual or mental. Motivation provides the energy required to perform the behaviour.

2.4 Company Strategy


The elastic and vigorous nature of business environment demands organizations to deal with steady modifications in order to stay robust and competitive. This is done usually by protecting the demands of the present and, flaws of the organization with the existing, and possible, chances and intimidations in the atmosphere (DeWit and Meyer. 2004). Business situations can be explained as competitive therefore the success in the market can only be achieved through the formation of a competitive gain, which is quite sustainable, and essential for the growth and development of the organization. According to Barney, (2001) a sustainable competitive advantage can be gained with the addition of value to a company making it unique as well as matchless. 
In academic literature on strategy there are two major approaches which are concerned with the achievement of competitive advantage, (Thomson, 2003). The positioning model builds on a comprehensive analysis of the business environment before devising business level strategies. Hence this model suggests that competitive advantage can be achieved by analyzing to external developments, (Thomson, 2003).

2.5 Type of Motivation:


Motivation is classified in two basic types intrinsic and extrinsic. Generally intrinsic refers to self fortitude of an individual which leads him or her towards good performance (Barney, 2001). On the other side extrinsic motivation is related to external factors which take part on performance of an individual such as salaries, promotions, working condition, treatment of staff and management’s policies in the organisation (Vohs, 2009).
Generally, actions are motivated in different ways. For example a sportsman can experience pleasure to train and grow (intrinsic motivation) but also be interested in the rewards he would receive according to his results (extrinsic motivation). The different types of motivation can therefore coexist. Field experience even seems to show that it is desirable to have different sources of motivation that can somehow take turns to support the intensity of the commitment of the athlete, (Simon, 2009).
But usually when want to strengthen the motivation, the main ideas that come to mind relate to extrinsic motivation. Many parents put up such a reward system based on the results of their child. Intrinsic motivation is more difficult to build and is unfortunately often forgotten, (Amabile, 2008).

2.5.1 Intrinsic Motivation


Intrinsic motivation means that you practice an activity for fun and satisfaction that one derives from it. A person is intrinsically motivated when he or she carries voluntary activities and interest in the activity itself without waiting for reward or seek to avoid any sense of guilt. There are various determinants of intrinsic motivation, (Rollinson, 2005).
 Curiosity appears experimentally as a natural need. Curiosity is a determinant of motivation that is not subject to reduction or wearing away with satisfaction. It is always a moving psychological element, (Vohs, 2009).
Many studies have been conducted on the effects of level of self-determination. Overall, it appears that intrinsically motivated behaviours are showing greater creativity, greater perseverance because motivation from inside provides confidence and energy to an individual to show good performance.
The pleasure should always remain at the centre of the activity. This usually occurs when starting a game. But later, the search for performance or the monotony sometimes relegated to the background pleasure, (Tang, 2008).The monotony, however, can be avoided by diversifying his training, conducting various sets or using different materials. Trying new things is often a good tool to keep the pleasure of swimming. It should also set goals in every workout. Swimming aimlessly, simply by linking lengths is not very pleasant. The objectives in training are many: to time, maintain a low number of movements, have a perfect regularity, master a new swimming etc. If the difficulty of this goal is measured, the athlete will be happy to achieve it, (Tolman, 2008).
The need to feel competent is a basic need that is involved in building self-esteem. Spontaneously, we tend to assess this skill in comparison with other practitioners. To develop a true intrinsic motivation, it will instead attempt to take greater account of personal progress. Become aware of their progress in each area of ​​performance: technical, physical and sometimes mental (better management of stress, for example) can build self-confidence and an important motivating effect, (Pinder, 2009).

This corresponds to the satisfaction of a basic need, to feel the actor, to be responsible for its performance and not be a pawn controlled by others (Allen, 2008).

2.5.2 Extrinsic motivation


Extrinsic motivation is defined as follows: the subject acts with intent to obtain a result that is outside the activity itself, for example, receive a reward, avoid feeling guilty, win the approval of the motivations are extrinsic. There are various determinants of extrinsic motivation. In the academic world, examples of this type of motivation abound: work to get good grades or to avoid unpleasant, or to please the parents, seeing his or her teachers, (Rotter, 2010).
We can say that contrary to intrinsic motivation, extrinsic motivation is manageable and depends on the teacher or employer. It deals with the people who are either weak or unmotivated.  - They express confidence in their ability to succeed. (Peak, 2008)
We can therefore say that a primary motivating factor is the attitude of the employer to his employees. Often we also see that extrinsic motivation is seen as a constraint while intrinsic motivation is entirely self-determined. Results even show that an activity previously deemed interesting by employees, that is to say they play only for fun, loses its value if it is performed under duress. Cite as examples the reward, the temporal boundaries or research recovery. We can see that these three examples of constraints are commonly used in the educational world, (Roussel, 2009).
Indeed, if define autonomy as the ability for the student to perform an activity without the intervention of any supervision, the fact remains that this activity can be performed under the threat or in order to extract a reward, (Simon, 2009).
Another factor extrinsic motivation: the choice of activities and how are they conduit? In conclusion, the motivation for the school is not something static, but a kind of scale that ranges from intrinsic motivation by way of motivation extrinsic. Intrinsic motivation is the highest point of the scale, (Kanfer, 2009).

2.6 Theories of Motivation


Theories of motivation are presented by different authors defined as under:

2.6.1 Maslow Theory of Needs


This approach analyzes the existence of the self and accentuates the importance of the cause and the cause of itself. The aim of this theory is to allow everyone to get in touch with his emotions and perceptions in order to reach their full potential, that is to say, achieving self-actualization (Porter, 2008).
For Maslow (2009), the behaviour, be it of any kind, is always driven by the desire for personal growth.  According to Maslow, needs are organized in a hierarchy or, at the base, we find the basic physiological needs and at the top, there are the psychological needs and emotional high order. It is these needs that create the motivation (Maslow, 2009).

- At the base of the pyramid we find the need to maintain life (breathing, food, elimination, temperature maintenance, rest and sleep ...). These requirements are fundamental.
- The floor above constitutes psychological needs, safety, cleanliness and esteem needs and together these needs lead to self-actualization.
- The third floor is represented by the social needs of affection, esteem for from others and belonging.
If these basic needs are met, there appeared, in what is called the principle emergence, other needs of the development called secondary needs, which are more about self-realization as to be free, that the filling of gaps.
- The fourth floor is the need for self-esteem themselves (feeling of being useful, to be of value)
- Once this need is satisfied, one can reach the top of the pyramid that is to say achieve self-realization (increase knowledge, develop values, have an inner life ...) and as Nietzsche says: "become what we are "(MMMaslow, 2009)
Human relations school share a decision model that forces the working man. The first answer involves a naturalistic view of man; the worker is bound by natural needs, which should be ably contented to improve its results.(Kasser, 2007)
One approach was to establish a hierarchy of needs. Thus, Maslow defined a hierarchy of needs, which generate motivations, also prioritized. The organic needs are the base of the pyramid, after security, love and belonging, esteem and finally self-actualization. Some needs, such as esteem, have both an individual dimension (self-esteem) and social (prestige). Maslow's hierarchy takes the pragmatic observations, however, that the incentive to give a premium to the individual because, he said, for a growing group on the pyramid of needs, each member must be satisfied for all levels below the level targeted by the group. In practice, Maslow recommends to promote interest in the work and put the money to its rightful place. The theory of Maslow's needs, however, expressed in terms of individual social psychological functions, and as needs are prioritized from the outset, it can avoid any major distortion from reality, (Locke, 2008).

2.6.2 Two Factor and Theory X and Y of Motivation


Two-factor theory of Herzberg also stated that motivation is driven by the search for optimal satisfaction of certain needs. Herzberg et al. (2008) distinguish two categories of workplace factors involved in very differently in the mechanism of motivation. The first category includes factors that have the capacity to provide satisfaction to employees. Herzberg (2008) proposes a list of motivating factors: the accomplishments (completion of a job well done), the recognition of accomplishments, the work itself (purpose of the work), accountability, promotion or advancement, the possibility of development.
Factors of the second category would not have the capacity to provide the satisfaction, at best they would give rise to indifference, more generally, and they could generate dissatisfaction. They would not be at the origin of motivation. They push the individual to act without any real motivation that is factors of hygiene, maintenance or mood - the necessary balance mind of the individual. These hygiene factors are: the superior (quality and defects), the policy and administration of the company, working conditions, relationships with colleagues, subordinates and superiors, prestige, job security, the compensation, personal life factors (influence of the company on life, mutation).(Luthans, 2007) Herzberg and his colleagues point out that motivational factors are essentially relate to job content. They are associated with job satisfaction and tend to lead to feelings of personal development (Peak, 2008).
An existence, relatedness, and growth, satisfiable or motivators, disatisfiers hygiene, they relate to the work context - the circumstances in which the individual operates. Later, Herzberg as cited in Kasser (2007) conclude categorically that satisfaction is independent of dissatisfaction, ie motivational factors can produce satisfaction, or, in the worst case of non satisfaction. They are not the cause of dissatisfaction. In contrast, the hygiene factors can generate dissatisfaction among a person, or at best the absence of dissatisfaction rather than satisfaction. From this conclusion, Herzberg are two categories of needs: physiological needs, factors associated with hygiene and psychological needs, factors associated with motivation. This analysis leads him to ask the basic concept of enrichment work. To motivate an employee in his work, the elements corresponding to the motivational factors must be incorporated in the configuration employment in order to enrich it, (Nadler, 2008).
Douglas McGregor embarks on another track, and comes to emphasize the importance of implicit biases about human nature and individual behaviour in the choices made by management and the style of executive authority. He summarized his views by a Theory X:
1. The average person is working against the idea (concept of avoidance);
2. The average person must be controlled and threatened with sanctions;
3. The average person prefers to be directed and shuns responsibility.
This theory associated itself with the ​​pre-basic concepts; McGregor felt that only these principles are accepted by management, even when they are unaware. However, Douglas McGregor himself opined that the scope of management included more than the monotonous activity of giving orders for the sake of creating workers’ forceful obedience. He sees management as having well-poised relationship between the needs of the workers and the needs of the organization.(Leavitt, 2009)
The application of Theory Y has much to do with the performance of the management. In many organizations, the management treats the workers as if they were mere tools of the trade. This tendency may be described as the major impediment in the application of Theory Y. Leavitt suggests that the “change in the direction of Theory Y will be slow, and it will require extensive modification of the attitudes of the workers and management alike.”(Kirton, 2007)  Another pitfall of Y theory is that its implementation does not sit well with the massive workforce operations, shops though it may prove to be quite useful for the professionals and knowledge workers.
McGregor believes that once the choice between X and Y theories is made, the attitude of the management with their employees will change. The Y manager will consent to transferring some power and authority to his workers while the X manger will impose his own terms and conditions of the work on the workers. However, Maslow contends that the effectiveness of Y Theory loses its luster since not everyone is capable of inducing highest level of self-motivation. (Robert, 2007) 

Frederick Herzberg noted for its two founding religious myths that he believes in work psychology: Adam and Abraham. Adam symbolizes the man who must escape the evils caused by his environment, while Abraham is the one who aspires to the development of its accomplishments. These two contradictory requirements, namely to escape pain and growing psychologically coexist and give rise to factors of satisfaction and dissatisfaction varied. Herzberg identifies five factors of satisfaction:
  1. Completion,
  2. Recognition of achievement,
  3. The work itself,
  4. Accountability
  5. Social progression.
Factors affecting discontent over the environment and relations between men: the politics of administration, the person of higher pay, relations with colleagues, working conditions. Herzberg promotes job enrichment, to increase interest in work, and autonomy in a mood-enhancing theory that seeks to balance a natural equilibrium of power.(Perry, 2007) But just as Maslow, he believes that self-realization is the most important goal for the worker, and therefore a priori from the vector work to a successful life by linking perhaps too hastily to his subject of study its assumptions, (Hackman, 2010).

Contributions and limitations

The theory of needs and motivations thus takes many forms. It introduces as a key element of motivation and trying to get across to the leaders the idea that the excesses of the division of labour should be regulated, based on the natural characteristics of the working man. As a result, theorists of these paradigms have touched the heart of organizations, not only work within existing structures.(Skinner, 2009)
However, the theory is ambiguous. As it occurs mainly in the circles of direction, sometimes it reinforces the power Taylorist: the development of working conditions, for example, is performed by an outside group of workers, of course agent who wants to meet management's place. The results are not necessarily in the sense of "self-realization at work. "In fact, self realization and satisfaction appear distinct. Moreover, satisfaction, gauged by management, does not necessarily increase productivity, which is then the measuring standard. In fact, satisfaction does not necessarily in the sense of individual motivation in favour of the organization, then this is the motivation that essentially determines productivity.(Stajkovic, 2004) For its shortcomings, the theory of needs and motivations stresses the importance of strategic responses and the ambiguity of a purely naturalistic sociology, (Pinder, 2009).

2.6.3 Theories of organizational justice and equity


The theory of fairness has seen its major developments in the early 1960 with the work of Adams. A new echo was given to it since the mid-1980 under the guidance of Greenberg's work on the concept of organizational justice.
The equity theory expostulated by Adams, (2009) likens the motivation to work to different personal and social situations. Adams also refers to the theory of cognitive dissonance of Festinger (2008)  of which the basic assumption is that there is a dissonance between what is perceived and what is desired is a source of psychological stress, resulting from the individual of behaviours that reduce this tension and dissonance. Thus, the individual observe their professional environment to see if treated fairly in company. According to this theory, the individual tends to evaluate contributions (input) for their organization of work (performance, quality of training, competence, seniority, work, etc.). It also assesses the benefits (outcomes) withdraw from employment (wages, working conditions, status, recognition, promotions, etc.) It is limited to the "sense positive personal pride of having managed a particular performance "(El Akremi, 2008).
Each individual develops a ratio corresponding to this comparison: Ap / Cp. The individual continues the process of comparison by evaluating the ratio "benefits from the use of contributions for the company" he perceives in other people considered landmarks: Aa / Ca. The individual develops its ratios according to his perceptual system, so they are subjective. Each person gives different weight to any benefits and contributions and has information more or less limited. When an individual perceives their gender ratios, he experiences a sense of fairness. He perceives that the benefits he derives from his job (salary) in respect of its contributions (efforts) are fair in terms of benefits and contributions persons with whom he compares himself.(Welbourne, 2005) Finally, the individual tends to be compared to one or more people within his business, and people working in other organizations. He will face a problem of internal equity in the first case, equity outside in the second. In developing the concept of organizational justice, Greenberg proposes to distinguish two dimensions of equity in organizations, justice distributive and procedural justice (or processes). Greenberg's theory of analysis Adams' equity also accounts for the sense of distributive justice. The sense of fairness creates a favourable perception of distributive justice that is to say, the sense of justice with respect to the allocation of rewards by the organization (salary, promotion, recognition, responsibility, etc).(Sirgy, 2009) Greenberg intends to join the built and analysis that is made, the sense of justice vis-à-vis the procedures and process used in the organization: procedural justice. It concerns main processes in place to make allocation decisions rewards such as performance appraisal system, the process of advancement, procedures for appealing decisions and processes of participation in decision-making, (Deci, 2008).
According to the place that is reserved for individuals in these processes, it will feel fairly or unfairly treated. The process in which the individual participates in decision making, where he has information where it can be justified to give an opinion, make claims, positively influence fairness. Another aspect of the process influence fairness is how they are implemented. The arbitrariness, consistency, morals and ethics in the application procedures, are considered determinants of a sense of fairness (Lawler, 2009).

2.6.4 Cognitive Theories of Choice


Kanfer (2009) includes in his taxonomy of theories expectations-valences (Theories E x V), allocation and dynamics of the action, within a paradigm that has this expectation: expect or wait.
These theories are based on a basic principle which has an origin in the work of Tolman (1932) and Lewin (1936). According to them, behaviour is determined by the subjective value of the individual since their goals and expectations continue to produce the desired results and behaviours.  Employees attempt to maximize positive results while at the same time they can also minimize its effect by opting to adopting negative behaviour. The outcome of these behaviours is generally associated with more high value and the perceived positive utility."(Kanfer, 2009).
This taxonomy suggests that these theories into three approaches: the cognitive-interactional classical approach cognitive-intermittent dynamics of the action.
This theory has made major contribution to the theories of motivation. The motive for the performance is the stimulation or the force that pushes the individual to guide his behaviour toward goals they value. Faced with his work, the individual chooses behaviour based on a trade-off between the expectations of positive effects on success and negative effect on failure. The motive for the performance encourages the individual to seek success and avoid failure. The theoretical model of Atkinson conceives of motivation as the product of a process in which six factors interact (Murphy, 2009).
The one is the performance of mobile and mobile access to success. The second is the motive to avoid failure. There is an inclination to avoid failure and therefore a brake to the outbreak or the intensity of behaviour. It depends on the propensity of the individual to feel anxious in case of failure to achieve a goal. Two other factors are consistent with expectations of success or failure.(Nickerson, 2008) This is surely an evaluation probability of success or failure depending on the goals. Finally, the two latter factors are consistent with incentive value of success or failure. It is the subjective evaluation of positive or negative effects that will occur if success or failure. Thus, this model suggests that work motivation requires three conditions, be motivated to perform the tasks successfully (mobile accomplishment) perceive a probability of success (expectation) and enhance the success (incentive value of success), (Murphy, 2009).

2.6.5 Expectancy Theory of Motivation


The expectancy theory of Motivation describes that motivation is dependent upon our desire to achieve something and our expectation to get it. Dr. Victor Vroom, who had presented this theory, said that motivation can be based upon the following three factors:
·         Expectancy: it is the expectation of a person to achieve something
·         Instrumentality: it is the expectation of the person that performance will lead him to his desired destination
·         Valence: it is the value of an outcome in the eyes of an individual
The expectancy model of motivation presented by Dr. Vroom suggested that motivation is an important factor of achieving the desired goals and people are motivated due to the expectation of rewards for their performance (Young, 2009). 
For example, if there are three sales representatives, A, B and C, and all of them are competing for the post of Sales Manager
1.    A has a great sales year and his performance is excellent but he was reluctant to take the job of Sales manager because of its pressure and stress
2.    B wants to take the job but he thinks that he is not able to get it because he has a terrible sales year and his performance was not very good during the whole year
3.    C also wants to take the job and think that his chances are very bright. His sales are good and improving and his performance is also very good in the eyes of his superiors
According to Dr. Vroom’s expectancy motivation theory, A and B both are not motivated to get the job and C is very motivated to get the promotion because he thinks that he can get it.  
Thus Dr. Vroom considers that desirability to achieve something is the real motivation to get it. He calculates motivation in his expectancy model as
Motivation = Expectancy * Instrumentality * Valence
  If any one of these three factors is missing then motivation is also vanishes.
Expectancy model of motivation is not a simple model. Each action to motivate people leads to many other results. For example if people are motivated to achieve their desired results and work extra hours to get it they may get the pay raise or promotion but on the other hand their social and family life will be ruined (Pinter, 2009).
Two models will be illustrated for due process in empirical research conducted over the years from 1970 to 1980. These models are namely Porter - Lawler (1968) and Nadler - Lawler (2008). The latter is the result of conceptual work of the classical models of expectations. Often applied to compensation issues in business, he proposes a causal chain between the motivational process, the level of effort in the work, the level of performances, 'rewards and job satisfaction.(Tolchinsky, 2008) Variables moderators intervene to change or break this chain, such as individual capacities, approaches to problem solving developed in organization, positive and negative experiences in similar situations, the allocation of rewards in the past. In this model, work motivation of will depend on his beliefs: (1) in its ability to deploy efforts to work the desired level of performance (work expectations - performance), (2) that the behaviour, namely his efforts will lead to certain outcomes (expectations performance - results like rewards). Finally, the motivation will depend on the attractiveness of possible outcomes (the valence of rewards).(Perry, 2009) The instrumentality is no longer directly in this modelling. It comes in a second time to explain the direction of the valence of an outcome. For example, obtaining a result of the type of training skills, following the performance will depend on the valence relationship instrumental perceived by the individual between the results of the first level and a reward future to be or not attractive to him (second level outcome: change of status or increased responsibilities with no increase (Porter, 2008).
The principle of the theory of the dynamics of the action is based on the opposition of two forces that would determine the motivational behaviour: consumers and forces agitators.Forces incentives action or task that motivate are changing over time (Schwartz, 2010).
This theory seeks to explain how people can work on tasks to which they assign a low valence. The individual may remain motivated to his work longer, but his motivation will be directed towards different activities carried out regularly (Bernell, 2009).
Thus, the stability of motivation over time can be explained by policy changes in behaviour. The opposition forces and motivators consuming for a task in relation to another can maintain motivation overall vis-à-vis employment. When the forces consumers outweigh the forces incentives for most of the activities of their job, we can assume that the individual are unmotivated, (Tolman, 2009).

2.6.6 Importance of Motivation in the Workplace


The importance of workplace motivation cannot be stressed less in any manner. Motivation can leave an impact on the outcome and productivity of the business and both its quantity and quality as well. It goes without saying that business always hinges on the productivity of employees because they ensure the manufacturing or the service processes to meet the demands of the clients, customers, and consumers.
The lack of motivation at the workplace produces negative results and consequences for the organization. It creates an environment and state in which staff becomes indifferent to meeting the demands of business. (Diener, 2005)
The fact remains that employees are the greatest asset of any organization and no matter how efficient or effective technological equipments can be, the effectiveness of staff cannot be overlooked.
In majority of today's work environments, employee’s key goal is quitting time and payday. Leaders’ priorities are power, control and maintaining the status quo. Once needed skills are mastered and employees follow established procedures, the job offers little or no challenge. The unwritten law, "accept the way things are or leave." Motivation opens doors for the workplace education and learning as well.(Heneman, 2006)

Given the fast changing trends in technology and modern workplace, works environments have went through a drastic change but the importance of motivation continues to be a valuable asset for the development and growth of the company. Only motivated employees can perform better because they have an ability to assume the responsibility of the tasks in a commendable manner. All in all, motivation provides employees with an opportunity to learn and meet the challenges of the present-day workplace.(Johnson, 2006)



2.7 Conclusion:
In literature review discussion of different authors related to motivation is presented by the researcher. The non monetary incentives and similarities between employees and management perception about motivation is discussed which is supported by different theories of motivation. The affect of non monetary incentives on performance of employees is seen according to Tolman, (2009) employees get motivated through non monetary incentives because recognition is itself a big charm for them. This point of view is supported by Rousell, (2008) and El Akremi, (2008) as intrinsic motivation and extrinsic motivation both are required to improve performance of employees because through self determination employees are able to aware about performance management in organisation.
The case of Ideal Bakery is related to employees unsatisfying performance and major problem is their unawareness about affect of good performance. The research is taken through interviews of management and employees in which perspective of both sides were asked. The analysis of interview taken from both sides follows discussion and conclusion which recommends immediate action to get satisfactory performance from employees.



3.0 CHAPTER 3 RESEARCH METHODOLOGY


3.1 Introduction
The third chapter is research methodology in which researcher has discussed pattern of research, its design and data collection methods to rectify the problem statement related to Ideal Bakery. The problem statement in this research is highlighted as employees are not prepared to perform better. Researcher has designed methodology to get interact with management and employees to ask them the major obstacles which distract their attention towards good performance.
3.2 Methodology
The methodology is literally defined as the "science of the method," or the speech of the method, mapping method or simply method or methods. In its other terms methodology can be defined as a class of methods, a kind of toolbox where each tool is a method in the same category, as there analytical methodology of causal determinism and methodology of the final system teleology, (Easterby-Smith et al, 2008).
When working on a domain, we can establish a series of questions to ask, people to visit and interview, information gathering, the processes, to make choices. This allows us to carry out more effectively study or solve a problem. The methodology is the systematic study, regardless of the topic to study itself,
(Maylor and Blackmon, 2005).
Journals, periodicals, newspaper articles, magazines and e-magazines are all of the primary sources that were used in the preparation of this report. The study will use the qualitative methodology because the field of this study is very vast and qualitative study provides the researcher proper observation of behaviour and attitude of participants during data collection. This study utilized inductive reasoning which requires that data collection and analytic processes be conducted in light with additional data. The analysis therefore occurs as an open step in conceptually interpreting the data set as a whole by using analytic strategies. (Joubish, 2009)
The interviews which conducted with the people and officials provides the researcher clear picture of operations taking place at each level of the organization from top to bottom. This also helps in getting a perspective regarding the ways in which the organization looks and provides attention towards the element of motivation. Furthermore the interview also encompasses the lower level staff segment of the organization so that the opinion provided cannot be said to be biased.

3.3 Research Philosophy:


A research philosophy is credence about the method in which data about an occurrence should be collected, examined and implemented, (Saunders et al, 2009). Two main research philosophies have been known which are called positivist (occasionally called scientific) and interpretivist (also recognized as anti-positivist and in some cases is called social-constructionsim), (Joubish, 2009).

3.4 Social Constructionism and Positivism

A social constructionism is an idea or exercise that is the construct (or artefact) of a meticulous group. Social constructionism is characteristically based on veracity, facts and learning, (McCullough, 2003). Constructivists are in epistemology, schools of thought based on the idea that our presentations, knowledge or the categories structuring this knowledge and these representations are primarily and essentially, the product of human understanding not the accurate reflection of reality (Collin, 2007).
Constructivism gradually became one of the foundations of the approach of Palo Alto, as evidenced by the publication in 1981of the invention of reality, Contributions to constructivism proposed by Paul Watzlawick are notable which includes contributions from von Foerste rand Ernstvon Glasersfeld. (Festinger, 2008)
This study has reflection of social constructionism because the researcher has to study human behaviour their attitude towards motivation and the elements which attract them for performance such as non-monetary incentives.

3.5 Qualitative/Quantitative Approach


Research is done by adopting one of the two methodologies; Qualitative or Quantitative. The basic difference between these two methodologies is qualitative method deals with words while quantitative method deals with numbers.  However, it is a continuous debate among the researchers about the difference and efficacy and effectiveness of these methodologies.  This report briefly describes the difference between these methodologies, (Dawson, 2006).

3.5.1 Quantitative Research


Quantitative research is related to collection of data in form of numbers, figures and statistical orders, (Joubish, 2009). Quantitative research is useful for analysis and provides exact result to the researcher because data is available in numeric form which get calculated and analyzed easily (Saunders et al, 2009).

3.5.2 Qualitative Research


Qualitative research is related to the data which is available to the research in descriptive form and focus on behaviour of human, (Bryman and Bell, 2007). It is useful when the researcher try to get knowledge about attitude and behaviour of people related to any problem. Qualitative data is comparably difficult to analyze because of descriptive nature but it provides deep understanding to the researcher about the study. The interviews and group discussion are some techniques for collection of qualitative data.
In this research method, data is collected through interviews.
3.6 Inductive Reasoning
Reasoning is defined as a mental activity in which one processes information in order to draw conclusions. It is also important to have a comprehensive approach towards the different types of reasoning that can easily be applied, (Esterby-Smith et al, 2008).  Inductive reasoning use general principles and the logic which might get false or true. For example if there is 20 black and white kittens in a box and if sample of 5 kittens taken in which 4 white and one black kitten come it will be assumed that in a box 15 white kitten and 5 black kitten.
3.7 Deductive Reasoning
Deductive reasoning is efforts to demonstrate that a theory and hypothesis are linked to each other and conclusion gets true if premises are true (Esterby-Smith et al, 2008). Deductive reasoning is usually assessed in conditions of their strength and accuracy. For example Simon is sick today, and then he will get off from work. If he will off from work, then he is not able to complete the project which was given by his boss. If Simon is sick, then he is not able to complete the project.
The difference between deductive reasoning and inductive reasoning comes as deductive reasoning contains more facts and inductive reasoning is more logical in result.
3.8 Suitability of inductive reasoning
For this research inductive approach is found suitable by the researcher because general conclusion is required for motivation of employees working in Ideal Bakery. The data collection is made on basis of interview so the researcher has found data inductive reasoning suitable because participants present their point of views and researcher try to analyze it logically after getting point of views from both management and employees sides.
3.9 Data collection
After we are through with the execution of all the different methodological processes and procedures it is now important that we have a look at the ways through the help of which the stage of data collection can easily be fulfilled. Since the key focus of our discussion as even discussed in the literature review revolves around the topic of motivation and the different types of ways in which this particular instinct of human nature can be enhanced especially when applied to organizational conditions.
In addition to this important point that needs to be mentioned here is that the area of motivation we will specifically be dealing with is related to motivational rewards that are non-monetary in nature. We would specifically be looking at the ways in which such kind of motivation actually helps in uplifting the level of employee confidence and his credibility for the organization he is affiliated with.
For the conduction of any research the most convenient type of sources that can be used for the utilization of information include research journals, periodicals and e-zines, however as far as the application of these informatory sources in this research is concerned they might not turn out to be very helpful because of the nature of work in which the employees are engaged in and secondly, because of the nature of market dynamics that we are dealing with. In this particular type of research the sources that prove to be most helpful and effective as far as overcoming complications related to data collection are concerned will be through the use of interviews. (Pinder, 2009)
It is also important to mention here that the use of interview in this research provides a generalized overview of the market from managerial as well as employee segments of the company.
3.10 Primary and Secondary Data:
The data collection is based on two techniques primary data collection and secondary data collection.
Primary data is based on the work that has been done by the researcher himself. The work that has been conducted by the researcher encompasses questionnaire, interviews, and survey reports (Saunders et al, 2009). The researcher applies the practical efforts for collection of primary data and interacts with participants during researcher, (Dawson, 2006).
Secondary data is not researchers own work and researcher rely on work on other researchers on same topic, (McCullough, 2003). Both type of data collection is important for research and for this study researcher has used primary data collection method through interview. Data sampling is an important aspect which defines size of participants in research, (Gollwitzer, 2009).

3.11 Data sampling

Sampling is a practice in research which chooses people in a bound and gets their inspection about the matter, (Johnson, 2002). Sampling draw the size of research which helps researcher to analyze the data easily. Sampling also proves authenticity of data collected by the researcher because a proper sample size such as 50 or 100 people makes the data reliable, (Saunders et al, 2009).
In this particular phase of our research the researcher has designed a sample for interview that was provided to people in management and employees inside the organisation of Ideal Bakery. A key reason for choosing these people of the organisation is that they are directly affected by the motivational policies that are formulated by the organisation.  
For the conduction of this research we will be taking support of interviews with the help and selection of appropriate sample size that has been chosen in of 10 such people that either belong to or have some kind of experience to share in regards to motivation. The interview consists of total ten questions in which five are asked to managers and rest of five are asked to employees. The questions are given in Annexure 1 and 2.

3.12 Interview


Interviews are mainly helpful for attaining the tale following a participant’s understandings. The interviewer can follow comprehensive information about the topic. The interviewer and interviewee both make discussion about the research topic but role of interviewer is to ask questions and interviewee give answers to those questions, (Reda et al 2005).
3.12.1 Types of interviews:
There are three types of interview in research, structured interview, semi-structured interview and open interview.
Structured interview contains pre-designed questions particularly objective and participants have to answer as Yes No or Don’t Know (Dawson, 2006). The interviewee does not make any change in order or number of questions. The analysis for this type of interview is easier but sometimes researcher is not able to get comprehensive information through this type of interviewee, (Saunders et al, 2009). 
 Semi-structured interview is a comfortable form of interview in which questions get asked to participants in detail. The interviewer could make changes in questions and make new questions. This type of interview provides good piece of information to the researcher and environment of interview gets comfortable as compare to structured interviews (Esterby-Smith et al, 2008).
Open interview is a brief discussion on research topic which lasts in couple of hours. There is no specific questions necessarily made for this type of interview and researcher could make questions during the interview (Reda et al 2005). This type of interview is difficult to analyze and researcher has to study the behaviour of participants during interview for final conclusion.
However the interview which will be incorporated in the research will tend to highlight the different ways in which motivational policies formulated by the organisation affects the employees accompanied with the perspective that the higher authorities have regarding it.
3.12.2 Conducting the interview:
The interview is made on telephone and interviews include one of the owners of the organization and managers from sales, marketing and production are included in this interview.  
Data Analysis is a process of examining, maintaining, converting, and reproducing of data with the aim of gaining valuable information, signifying summaries, and following decision making procedure (Reda et al 2005).
Data analysis has numerous aspects and looms, surrounding miscellaneous methods below a diversity of names, in diverse trade, science, and communal science areas, (Cresswell, 2003). The data analysis for this dissertation has made in descriptive form. Researcher has taken interview from participants and discussed with support of literature review in finding and analysis and discussion chapters.

3.13 Research Ethics

Research ethics includes behaviour and attitude of researcher towards participants during data collection (Johnson, 2002).
Ethics are of prominence is realizing the fact that the answers of interview which have been asked from two different groups working in the same organization but hold different designations must be kept completely secret from each other.
In addition to this it is also important to mention here that the identity of the different employees who will be approached to register their comments regarding the motivational strategies applied by the organisation must be kept completely confidential. The degree of this confidentiality can further be manifested from the fact that they will not be disclosed even if the higher authority of the organisation pressures for the disclosure of their names.

3.15 Conclusion


In the methodology portion of the research different aspects important for the research have been considered. Along with the philosophical and social perspectives towards methodolgy the ways in which data is collected and sampled has also been discussed. In the upcoming section of discussion it would be looking at the ways in which data is presented so that its degree of comprehensibility can be enhanced.





4.0 Chapter 4: Findings and Analysis


4.1 Introduction
In the discussion phase of research we will intend to focus more towards the ways in which the data collected and sampled can be presented in a form so that its comprehensibility and understanding is enhanced. It is therefore in this section of our research that we will look upon the different ways in which the data that we have collected can be presented in an effective manner.
4.2 Collection of primary data through interview:
4.2.1 Classification of interview participants by designation and age
Below the table and chart shows detail of interview participants by their designation, age and education level.
Lower level Staff
Managers
Age between 20 to 35
Age between 36 to 50
Age between 51 to 60
Graduate
Undergraduate
Below than O level
5
5
4
3
3
3
3
3

Table 1: Classification of interview participant

Chart 1: Classification of interview participants
4.3 Conducting the interview and results:
For the fulfillment of this objective we would be taking support of statement of results in which we will encompass the results obtained from the interview conducted by means of a questions. This will also involve the answering of the different research questions which constitute the crux of the research being conducted. First and foremost for assessing the results obtained with the help of interview a statement of results in the form a table can be presented:
4.4 Interviews of the five employees:
The researcher has taken telephonic interview of five employees and the name of employees is not given but they are categorized as A, B, C, D and E. All interviews were conducted in the native language of employees and since all identities of all employees were supposed to remain confidential they have been given names based on alphabets.

4.4.1 Is Organisation support motivation of their employees
The first second and third questions were about motivation in organisation of Ideal Bakery in which employees has discussed their experience with management and made recommendations for management style.
Results
The emoployee A has answered that management is in hand of new comers now and they don’t understand the requirement of employees properly. According to employee A, the new management doesn’t appreciate the skill which he got and that’s why proper understanding with the management is not possible. He said management has increased their salaries by scale not by experience and he really needs some kind of recognition.
Employee B when interviewed dicussed motivation topic that the employer is very old in business and basically they have started the business as a confectionary producer. Further with popularity they have introduced extension of their products and workload increased on employees. The employer didn’t consider efforts of the employees in popularity and no brochure came which support that employees have contribution in success.
The employee C has answered about the question their organisation is interested for motivation of employees postively that the employer do consider about improvement in performance. According to him the employer get feedback from employees regarding their work place but the major problem is communication gap between employees and management. The managers are more interested for getting orders which make them too much busy at work.
The employee D has focused some issues related to matter of conflict between management and employees. The last meeting with management was taken in March-2011 in which employees have discussed the issues related to their welfare. During meeting managers had made complains about the performance which was answered by employees as work load is too much on them and they should recruit new employees. Unfortunately the meeting get ended without any conclusion so the employee D was not sure that management is really interested on motivation of employees.
The employee E has supported the view of employee D that management is really not interested and he has been working for the company since 1992 and introduced many varieties in confectionary and sweet items. The employer didn’t appreciate his effort being a senior and talented employee also didn’t consider the loyalty because he has refused several offers from outside. The researcher has asked the reason for refusal and employee E said when he has started as an ordinary worker in bakery no one knew him in market and he is thankful to Ideal Bakery for giving an opportunity and he wants to serve his company. 
4.4.2 Are Non-monetary benefits suitable for employees?
The forth and fifth questions were related to monetary and non-monetary benefits provided by employer to employees at work. The questions asked to employees in the interview mainly concerned to their interest in monetary or non monetary benefits also relation of benefits with their loyalty to the company.
Results
The employee A has considered both benefits are good for motivation and promotion of employees. According to him non-monetary benefits are recognition, appraisal and appreciation of employee which creates punctuality and loyalty in employees. The punctuality and loyalty motivates employee to perform better for the company and in result of good performance monetary benefits get offered by the employer. The motivated employee wishes to perform better because want to maintain their position in company.
The employee B supported non-monetary benefits and the reason given by him is non-monetary is directly linked to intrinsic motivation because employee gain confidence inside. Festinger (2008) also discussed the same as recognition of good performance provides employee better approach towards performance, improve their professionalism and make them loyal with the company.
The employee C in his interview argues that either types of benefits are not effective unless management and employees have no strong relationship to each other. According to him management and employees should get close towards job and proper understanding related to work should be shared. The sharing of information focuses management and employees attention on a single point which is how to perform better. it also creates competition among employees for good performance and both monetary and non-monetary benefits get useful. He considered monetary benefit is useful because most of employees working in labour group have more interest in money as compare to appreciation.
The employee C, D and E all considered both benefits are useful and they demanded proper communication with management. The researcher has observed that majority of employees have seen gap between management and employees the possible reason would be difference in education. Employee D has said that before this bakery he was working for Nirala Sweets and their every week a meeting was held by the management to meet employees but here he has hardly communicated with managers. According to him manager should get close to them and concern of employer should also involve because it makes employee active and loyal to the company. The relation between loyalty and benefits has considered by employees C, D and E as they are loyal that’s why recommending better strategies to employer. According to them they don’t think loyalty really demands some kind of benefits from employer but conformability at work is very important because it provides employee peace in mind.
4.5 Interviews of the five managers:
The interview was taken to five managers on telephone and name of managers are not given due to policy of company. As mentioned earlier in research ethics that the identity of employees will be kept confidential as well as the information that they provide from each other.
4.5.1 Motivation of employees
The first three questions are related to their role as a motivator and strategies which they adapted for motivation of their subordinates. The third question asked to managers was related to their helpfulness to employees because if managers work together with subordinates and understand the work then performs gets better (Armstrong et al, 2007).

Results:
In answer of first question all managers A to E said that they try to communicate with the employees but sometimes due to attitude of employee things get worse.
Manager A said he is qualified food nutritionist and has experience in working with Ahmed Foods Pakistan Limited where standard of work is very high. He was hired by owner of Ideal Bakers because the company wants to improve the standard of their products. According to him relation with employees is not comfortable due to illiteracy in majority of employees. He concentrates on cleanliness and healthy work environment but the most of the employees don’t obey the rules.
The manager B said that proper training session with employees held three or four times a year in which new strategies get discussed also issues related to work environment get heard. One of the major issues is lack of teamwork and employees have different groups which makes problem for the motivation process. Many employees try to pressurize managers for their demand which is related to work and due to heavy workload management has to accept. The manager said he has started working as an ordinary worker and now promoted as a manager and he has no problem to perform the duties of his subordinates.
Manager C is related to marketing and he said his responsibility is related to getting orders from market. He brought big number of orders from market but performance of employees is not satisfactory. He also blamed that employer has not hired more employees and workload is decreasing quality. He said motivation of employees is possible through proper communication with them and according to him the management is trying and hopefully performance will get improved.
Manager D and E are related to sales department and they said they are too much involved with employees because they are responsible for distribution of orders. Most of the time orders not get ready and situation get worse among sales department and production department. They also considered limited number of employees is the big problem because each employee is taking an extra load. Manager D said motivation is an art which gets good work from employees and he tries to encourage employees through appreciation of performance.

The question four and five are related to role of non-monetary benefits for motivation of employees also their point of view about acceptability of non-monetary benefit in employees. The question also related loyalty of employees with incentives offered by employer.


Results
In answer of these questions managers had briefly discussed role of non-monetary incentives for employees.
According to manager A, employees generally show their interest in incentives offered by employer. It is the right procedure to get performance; he has made several offers to his subordinates regarding good performance. He said he announces every month a good performer and also pass reports of employees to employer for their performance. he said loyalty is concerned to recognition of work and employees get loyal if they feel management provide them full support.
Manager B said in general meetings no issue of salary get raised but sometimes employee demanded that they need some kind of profit sharing on the items they introduced and this demand was not entertained by employer.
 Managers C and D said employees are overloaded and non-monetary incentives are not enough for them to perform because the job of bakery needs technical skills and employer should increase size of employees.
Manager E said non-monetary incentives are really required for motivation and encouragement of employees which creates loyalty among employees. The current performance of Ideal Bakery is not satisfactory in market but the orders are increased due to increase in communication channels in country. Ideal Bakery sponsors Green Bus service (Inter city passenger service) and all sports event held in Faisalabad, Pakistan which familiarizes more people about this bakery. Due to good sponsorship workload is increased and employer should consider the situation and increase size of employees.
4.6 Interview of one of the Director
Researcher has made his mind to ask one of the owners about the situation of Ideal Bakery and motivation level of their employees in connection with non-monetary incentives.
Result
The owner has replied that work load is really increased and employees are really not performing satisfactorily but the problem is that hiring new employee sometime gets difficult. Fresh graduates are not interested in this field and mostly food sciences qualification holder try to move to Fast Food Chains. The second priority of fresh graduates is towards Food industries and many of the big Confectionary Industry holders are producer of bakery items. They normally get from market experienced bakery worker and sweet worker but their literacy level is very low. The situation of country is not good and hiring more employees reduces profit. The researcher has asked about the quality which is according to the managers and employees getting low. The owner has responded that its not low its satisfactory their work is increasing day by day and for motivation of employees proper training and non-monetary incentives is given to them.

4.7 Summary of findings


The interviews from employees and managers both sides have revealed the fact that workload is a major problem and new recruitment is really necessary. Employees do consider motivation is good for them and really shows their interest in non-monetary incentives, managers do consider usefulness of motivation and loyalty for business also discussed their efforts. On the other side one of the employers said performance is satisfactory.
An experienced employee B during interview considered extrinsic motivation good for professionalism because it involves appreciation and financial benefits altogether also increase loyalty in employees.
The managers prospective related to motivation, loyalty and benefits of non-monetary incentives are slightly different to employees. Managers considered standard of work is important also issues of cleanliness and punctuality also get discussed. Researcher has observed that employer’s role to proper communicate managers with employees is not present.
The researcher has observed that, gap between employees, management and employer are increasing and it’s a critical situation. The employer has seen during research more interested in profit only. It is really required to build strong communication between all these stakeholders because this is the only way for motivation of employees.
4.8 Conclusion:
The interviews and its results shows point of views of all stakeholders involved in the business of Ideal Bakery. The issue of workload and less employees, bad performance of employees also demand of good training sessions and performance is appraisal is raised. Researcher has found that communication gap is one of the major problem and it should be rectified through efforts of employer and researcher has shown his suggestion to the owner.

5.0 Chapter 5: Discussion


5.1 Introduction

The basic components of motivation are need, drive, incentives, and goal directed behaviour. Need is the pre-requisite for any motivated behaviour. Such a need must be felt or recognized by the individual who has that need. Needs are groups of goals that a person seeks to fulfilling a desire. Individuals have a wide variety of needs and the needs exist in each individual in varying degrees. There are the basic needs and secondary needs. Food, drink, sleep, air to breathe etc. are the basic needs of a person. Needs to be secured, to be in-groups, to achieve something are all secondary or psychological needs, (Simon, 2009).
When an individual feels the presence of a need and its fulfilment within himself, he is driven by a desire to fulfil that need. As a result he experiences certain amount of tension and his behaviour become goal directed. The drive and tensions motivate the individual to engage in actions, which may result in the attainment of his objective. Once the objective is achieved, the individual experiences satisfaction and thus relieved from tension. But the need fulfilment is continuous or cyclical process. After accomplishing a goal, new need arise.  The role of incentives is important in motivating individuals. Incentives are the instruments used in inducing people for a desired course of action. They cause people to willingly perform to the best of their ability. Intrinsic rewards offer an opportunity to develop personal initiative and achievement. A number of research studies have proved the impact of these incentives on performance. Opportunity for advancement, challenge, the type of work, responsibility, good supervision, good working conditions, and recreational programs are some examples of non-financial incentives, (Weightman, 2008).
The level of non-monetary incentives and motivation is important. The design of individual jobs, the structuring of positions and organizations, and the choice of technologies have major implications for job satisfaction. It hardly seems wise to make choices likely to invoke strong negative feelings. Creating an organizational setting more in tune with the expectations and requirements of both workers and managers is well within our reach, (Senecal et al, 2008). But what are the economic returns from intrinsic rewards? Can an organization that operates on a razor-thin margin of profit afford to design a more human organization? How does an intrinsic reward affect job performance?
The monetary incentives undermine intrinsic motivation and thus the effort of employees when they are perceived by them as a means of control, that is to say that they do not meet the psychological needs of employees such as the need for competence and the need for autonomy or self-determination in intrinsically interesting tasks. On the contrary, if they are not perceived as a means of control, they not only do not interfere with intrinsic motivation, but they promote it. For a long time, there is a dispute between the views of psychologists and economists about the effects of monetary incentives on the behavior of employees within the firm. The standard economic approaches incentives typically assume that monetary incentives as rewards contingent on performance can increase the effort of employees and thus their performance while the studies of psychologists mount these incentives can lead to stress reduction for employees especially in activities intrinsically motivating. Even if these points of view, studies of recent experiences economists also share the view of psychologists who believe that monetary incentives crowd out intrinsic motivation, and therefore the effort of employees. The recent work on intrinsic motivation suggests that the traditional dichotomy between intrinsic and extrinsic motivation seems less clear - extrinsic rewards are not necessarily harmful, but rather may play a complementary role to intrinsic motivation because the rewards can be integrated and internalized by employees.
 People sometimes do not know fully the reasons for their behaviour, specifically how the inherent characteristics of the task (intrinsic motivation) determine their behaviour. Therefore, they will infer the reasons for their behaviour from the circumstances that led to the completion of the task. According to this theory, individuals tend to attribute the reasons for their actions to the stimuli most dominant. In the absence of external incentives, including monetary incentives, individuals will allocate their reasons for doing the inherent characteristics of the task. If monetary incentives are implemented in an activity, then concludes that an individual performs this activity because of these incentives, developing a disutility of effort. This corresponds to standard economic motivation which confirms that only the type of external monetary incentives are highlighted, leading officials to believe that the reason to perform a task falls to this type of incentive. Thus, the design of the motivation of the person for the job is also changed. By cons, if the external incentives are reduced or stopped, the agents will cease to perform the task in question since the source sponsor of the action has moved from inside to outside.
In some cases, the employee / employer relationship is neither pure cash nor purely non-monetary. The question arises of why and how to move from one system to another, and to understand how to predict which system will permeate most employment relationships. In case of non-monetary rewards the effort is important and sensitive to rewards, whereas in a market money to the effort starts low and increases with income. In a market that combines the two elements, the social and monetary employees behave largely according to the scheme funds.
Actually speaking, certain types of jobs attract a specific category of employees. These are the jobs of public service, NGOs, and various organizations that develop social and business targeting the common good. These jobs attract people insensitive to monetary incentives, for which intrinsic motivation is crucial. In terms of motivation, employees, the labour market, become seekers of a certain type of work looking for a particular motivation and businesses become providers of employment seeking to meet the expectations of employees motivated by some type of incentives. Companies looking for people who prefer intrinsic motivation. This would be beneficial at all levels because all companies want to attract motivated people, especially who enjoy an environment free from monetary incentives, but rich in intrinsic motivation.
The results of the findings have shown that a person, who enjoys the work, works harder at it than the person who does not. Similarly, one interested and involved in should have a stronger commitment to doing a better job. The argument could also be made that doing the job well causes one to be satisfied with that job. The tendency to continue doing what one does well and to find satisfaction in such competence may offer some of the rationale for the performance-leads-to-satisfaction argument. Inability to perform work duties well should be expected to cause frustration and thus lead to dissatisfaction.
The findings have also shown that although the workload is enormous on the bakery worker but the bakery finds it difficult to get fresh graduates because most of the educated persons do not want to enter into this field of business. Using recruitment agencies can save a lot of time and money as they will advertise shortlist and interview the potential candidates. This method can also be quicker than others as the company has access to the agency's database of potential candidates. On the other hand, recruitment agencies can be very expensive, they may not understand exactly what the company requires and they may use limited selection methods as recruitment consultants' skills can vary.
Ideal Bakery is a reputable company known for its premier services. The company has employed a recruiting team which helps the company in attracting applicants who have a passion for people, high standards of excellence, and availability to work in company’s preferred working hours.  Occasionally candidates are hired from outside sources to fill management positions, most promotions are made from within to ensure that managers are fully aware of company’s standards, its best practices, and culture. The main objective to having a staffing strategy is to help meet the company's business goals. By understanding business goals keeps the competitive advantage low for other organizations to try to take over. By having the company business goals in mind helps with the continuous growth of the company to become larger and possibly hire more often within time.
The company’s normal practice for staffing is to invite applications for all non-management positions three to four weeks before the opening of a new vacancy. The company also organizes job fairs which allow the desiring candidates to complete their application forms and later to be interviewed there and then by the managers. Developing a Staffing Strategy for our company is crucial and requires a partnership with the recruiter and management staff in order for the hiring process to be successful for the company. By enabling a partnership with management and recruiters this allows the company to work together to find the perfect fit for the position. This means the hiring manager is there in the initial hiring process with the recruiter. This also allows the strategy assessment of the hiring of the employee equal involvement because the recruiter and manager are working as a team.
In Ideal bakery, to improve the performance of the employee, an employee needs to be trained constantly and this may develop his or her career. Even if the person is a cleaner spotter for example, he or she may after being loyal with the company and trained properly can obtain a promotion and become a supervisor. Supervisor’s job is to have as much technical expertise than the employee who actually does the work. Somebody of this post will have to be someone who knows the job of a cleaner-spotter very well. Even a small reward can motivate employees and keep them satisfied, which goes a long way towards the primary employer goal to retain employees. In Ideal Bakery people can be rewarded for achievements such as doing the greatest number of jobs in a certain amount of time or because they have referred somebody for a job position in the organization.
Ideal bakery, for more effective organizational development used five main principles:
·         Integration of work: The work should be integrated in order to get perfection. An individual should be specialized to get the flawless turnout, which can be achieved by his experience and skills in the specific field. This makes him more productive
·         Legal or rightful Power: It’s the alias of authority. This gives the person the right to issue any necessitated instructions, to accomplish some major task in any project
·         Discipline: Obedience is a must by the employees involving that particular project, but this totally depends on how you manage them. A good leader ship is required in order to achieve obeisance and respect.
·         Monogynic commandment: The source of commands given to carry out a particular project by a group of employees should be one. This is to avoid conflict with in a project and soothing the operation
·         Oneness of instructions: The direction and plan of the employees involved in a single plan should be same. To guarantee unity and coordination, among employees of an enterprise, oneness of instructions is a must

5.2 Recommendations

Following are some of the recommendations of non-monetary rewards which may improve the job performance of Ideal Bakery’s employees.

5.3 Communication:

The key to healthy work relation among the organization is based on managing communication within the firm. Communication is a two way process. It is really difficult for an employee to work with all of its competence, intelligence and enthusiasm if he does not know the real purpose of the job he is going to perform, the more important point is to give opportunity to the employee to communicate and contribute the idea and opinion before the manager or owner makes a decision, (Kotler and Keller, 2009).
Communication is actually the process of trusting the people and tells them with all the honesty about their position, about the position of the business and about the future plans of the organization. Negative feedback is maybe necessary sometimes but positive feedback should be the basic tool to establish a good human relationship between the employees and the management, (Armstrong, 2006). It is to be noted that the employees are human beings, it’s not easy to make them fool and they can easily detect insincerity in the atmosphere. Similarly they also respond to the honest and serious efforts to treat them as mature and responsible human beings.
The role of internal communication is to promote increase organizational reflexivity and involvement in organizational development. Integrated communication is the application of analysis; communication and evaluation techniques to create and manage integrated business process design, feedback and system to improve human interaction and human performance in an organization in order to achieve the desired goals of the organization, (Johnson et al, 2007).
To build trust through communication one basic point is to converse regularly with the employees and managers. Ask them about their thoughts, their opinions and suggestions about the recent company's initiatives or business decisions. Try to be genuine and make these conversations a daily routine and part of the organization's culture. If it depicts through the communication that there is a lack of motivation, communication or a leadership in the management it can be shown through the response achieved. Whole of the management has to make it sure that the informal conversation must be the daily routine of the company.
Suppose the motivation, communication and leadership is the key factors of an organization than there is nothing wrong if these factors can be measured. Conducting a cultural or an organizational survey to measure the basic level of leadership, motivation and communication or any other attributes, has really helped the management of the organization. Surveying the employees about the workplace culture is helpful to identify the strong and weak points of the organization, (Dawson, 2006). Try to conduct such survey every month, or every six months or every year to find out the improvements and changes and use this survey to set the priorities based on the business objectives. The survey results can even become the part of manager's annual report.

5.4 Creating the right rewards:


In all competitive and good organizations, a normal employee of the company usually gets a package including basic salary, health insurance for employees and their families and employer pension contributions. But the present business world and the workforce are more demanding. It has been estimated that almost forty one percent of the new workforce prefers to work for the companies that promotes work-family balance. For them the work-life balance is as important as cash.
The increasing competition for the best people available for the job has shifted the scales in the favour of the individuals. This shift has decreased the chances that the employees content themselves solely on benefit package that is based on basic pay and some fringe benefits and increased the chances of a reward system that can be tailored according to the needs of each individual within an organization, (Shields, 2007).
Many organizations in current business situation, operating flexible schemes that provide a number of rewards from which employee can choose which is most suitable for him. It is also a common practice in many companies that they offer their shares to their most talented workers.

5.5 Limitation of the Study

It is limited in that it is student level research and the most preferred method as access to required data can be obtained at little or no cost to the researcher. Journal, periodicals, newspaper articles and internet were the sources used to prepare this research paper. Thus for student level research it is the most preferred method because it is not possible for students to perform expensive research.

 

5.6 Personal development statement


Personal develop is a procedure which generates wakefulness in an individual via self-realization and effective observation to the social environment (Crowther and Lancaster, 2009). Personal development involves good judgement and analysis of an individual on given data. The people work on groups also gets benefited with personal development and role of leader, manager and supervisor builds strong teamwork (Bratton and Gold, 1999).
With the help of this research better understanding of the different dynamics and dimensions that encompass the element of motivation in an organization get cleared. The researcher developed his skills of communication and deep concentration to work on any research topic. Researcher has studied motivation as a topic in academic books before but through this study better understanding about motivation its implementation and role of incentives for performance and loyalty of employees to the company is generated.

Researcher has deeply observed that employees need some space related to their work and needs peace of mind at work. The researcher has taken interview on telephone and didn’t see the employee physically but he has observed with attitude and tone of employees that how they react when questions get asked. The qualitative interview also provided opportunity to the researcher to make analysis after making deep observation of participant’s behaviour on phone.

Researcher has studied through this study that non-monetary motivation is effective and essential for employees but proper communication channel is also required because without proper understanding about work no performance is possible by the employees.

5.7 Conclusion


It is obvious that motivation is a vast field showing a positive incentive for employees intending to increase their effort and optimize their performance. The manager or leader must have a strong ingenious use of intrinsic motivation to create opportunities for job satisfaction and satisfaction of needs of employees through rewards and other intrinsic approaches of motivation.
In this study, the assumption of intrinsic motivation of employees of ideal bakery has been tested with levels of satisfaction in employment reported by a number of workers. The study has demonstrated intrinsic motivation is properly maintained by ideal bakery. These findings thus demonstrate that the modes of involvement of employees must be selected based on elements of their motivation.
This study has shown that self-determined motivation was an important factor which influences the performance of the employees. Among other things, intrinsic motivation in organizations is positively associated with organizational performance. The results of a study found that self-determined motivation is related to organizational performance positively.







 

 

 

 



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